Source: Ritholtz Archive:

Barry Ritholtz has another great post about the housing market over at The Big Picture. In addition to his analytical insights, he pointed out two great tools for looking at housing markets across the country.

Updated chart of the classic Case-Shiller housing price index. On the one hand it looks like the decline may be bottoming out – but on the other, there is still massive intervention supporting the market and we could very likely overshoot fair value.

Ughhh. Type in your zip code and see how close you are to a nuclear plant!! There’s even a red target painted on the reactor!!! I’m primarily posting this so I have an excuse to link to this excellent article, which explains in detail what’s going on in Japan and why you shouldn’t run out to buy potassium pills and start digging a fallout shelter. I might also point out that we conducted 140+ atmospheric atomic tests in Nevada – I’m not saying that was a particularly intelligent or healthy thing to do, but let’s maintain a little perspective about fallout risks, shall we?

I have realized, after numerous conversations about politics and economics, that many people haven’t grasped that the economy doesn’t work the same way it did when they were growing up. As a commenter on The Big Picture said:

The role of a healthy financial sector is to support the “real economy”. But now it’s the opposite, like the tail wagging the dog.

Please use the comments to demonstrate your own ignorance, lack of scientific knowledge, ability to repeat discredited memes, and lack of respect for empirical data. Also, be sure to create straw men and argue against things I have neither said nor even implied. Any irrelevancies you can mention will also be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are anonymous after all.

Floyd Norris presents some interesting data indicating that it was the least expensive homes whose prices went up the most, and are now falling the fastest. Barry Ritholtz sees this as more proof that the bubble was in credit – not housing.